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MartyBurbankLaw, Attorney
Category: Estate Law
Satisfied Customers: 163
Experience:  Practice focused on Estate Planning and Asset Protection, LLM Tax,
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Does a revocable trust become irrevocable upon the death of

Customer Question

Does a revocable trust become irrevocable upon the death of the Grantor?
Submitted: 8 years ago.
Category: Estate Law
Expert:  MartyBurbankLaw replied 8 years ago.
Probably and Probably Not. <br /><br />A lot depends on the trust. It is hard to say without seeing the trust. But i will give you some generalities. <br /><br />First, generally a trust becomes irrevocable upon ones death, that said, the trust could leave everything to a surviving spouse. I popular planning technique for moderate estates is to use what is often called an AB trust. This trust splits into two separate trusts on the death of the first spouse and one of the trusts, usually the b trust, becomes irrevocable but the a trust is still revocable by the surviving spouse. <br /><br />Whether your assets are protected is a different question. It is possible, and i usually recommend my clients do set up a trust that provides asset protection for the beneficiaries. Unfortunately most estate planning attorneys don’t put such provisions into trusts. The only reason i can think of is they just don't know how. <br /><br />In other words you might have some protection under the terms of the trust, but you will have to look at the trust to determine if it calls for an outright distribution or if it maintains asset under trust leaving a distribution trustee with the sole authority to make distributions. <br /><br />

Howver, even such provisions would not protect the beneficiaries from the creditors of the grantor. It is possible to have a self settled asset protection trust but I would have to review the trust to give you an opinion.

If you would like me to read the trust and comment on it that can be arranged by contacting me thru <a href="" target="_blank"></a> <br /><br />Very respectfully, <br />Marty Burbank, JD, LLM
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Customer: replied 8 years ago.
My mother in law passed away 8 years ago. My father in law was the surviving spouse of the trust and funds were distributed outright to his 2 children by the bank (who served as trustee) after all the creditors had been paid. (It took about a year). This lawsuit was brought after all the funds had been distributed. The bank was also named in the suit. Do they hold any liability? We have been dismissed with prejudice and want to know if they have a leg to stand on should the settlement exceed the insurance company limit.
Expert:  MartyBurbankLaw replied 8 years ago.
You rase some important questions. Please re-submit as a new question and authorize at least $30 for the answer.

Very respectfully,

Marty Burbank, JD, LLM

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